Questions from General Economics

Q: List some of the ways that the problems caused by externalities can

List some of the ways that the problems caused by externalities can be solved without government intervention.

Q: This chapter discusses many types of costs: opportunity cost, total

This chapter discusses many types of costs: opportunity cost, total cost, fixed cost, variable cost, average total cost, and marginal cost. Fill in the type of cost that best completes each sentence:...

Q: Suppose you are a typical person in the U.S.

Suppose you are a typical person in the U.S. economy. You pay 4 percent of your income in a state income tax and 15.3 percent of your labor earnings in federal payroll taxes (employer and employee sha...

Q: Fredo loves watching Downton Abbey on his local public TV station,

Fredo loves watching Downton Abbey on his local public TV station, but he never sends any money to support the station during its fund-raising drives. a. What name do economists have for people like F...

Q: Buffy is thinking about opening an amulet store. She estimates that

Buffy is thinking about opening an amulet store. She estimates that it would cost $350,000 per year to rent the location and buy the merchandise. In addition, she would have to quit her $80,000 per ye...

Q: You are the chief financial officer for a firm that sells gaming

You are the chief financial officer for a firm that sells gaming consoles. Your firm has the following average-total-cost schedule: Your current level of production is 600 consoles, all of which have...

Q: Using supply-and-demand diagrams, show the effects of

Using supply-and-demand diagrams, show the effects of the following events on the market for sweatshirts. a. A hurricane in South Carolina damages the cotton crop. b. The price of leather jackets fall...

Q: Some years ago, the New York Times reported that “the

Some years ago, the New York Times reported that “the inability of OPEC to agree last week to cut production has sent the oil market into turmoil . . . [leading to] the lowest price for domestic crude...

Q: Two towns, each with three residents, are deciding whether to

Two towns, each with three residents, are deciding whether to put on a fireworks display to celebrate the New Year. Fireworks cost $360. In each town, some people enjoy fireworks more than others. a....

Q: Suppose that the president proposes a new law aimed at reducing healthcare

Suppose that the president proposes a new law aimed at reducing healthcare costs: All Americans are required to eat one apple daily. a. How would this apple-a-day law affect the demand and equilibrium...